XP Power Ltd Q1 Trading Update

 
TIDMXPP 
 
13 April 2023 
 
                               XP Power Limited 
                 ('XP Power' or 'the Group' or the 'Company') 
 
                            Q1 2023 Trading Update 
 
XP Power, one of the world's leading developers and manufacturers of critical 
power control components to the electronics industry, is today issuing a 
trading update for the first quarter ended 31 March 2023 ("the period"). 
 
Trading 
 
Trading in the period has been in line with our expectations, and our outlook 
for the full year remains unchanged. 
 
The Group had an order book of c.£280m at the end of the period. This remains 
well above historic levels and provides excellent full year visibility. 
 
Consistent with the end of 2022, order intake was below revenue in the period 
as customers moderated order volumes from the unprecedented levels seen in 2021 
and the first half of 2022, reflecting an easing of supply chain constraints 
and a softening of end market demand. Order intake was £61.2 million, down 45% 
at constant currency and 40% as reported with Semiconductor Manufacturing 
Equipment and Industrial Technology seeing the greatest impacts. We would 
expect similar order intake patterns through the second quarter before a pick 
up in the second half of 2023. 
 
Revenue grew strongly to £77.9 million, up 16% year-on-year on a constant 
currency basis and 26% as reported. The higher revenue enabled the Group to 
deliver improved profitability compared to the prior year period. 
 
£ Millions          Q1 2023  Q1 2022  Change    Change in 
                                                constant 
                                                currency 
 
Orders              61.2     102.4    (40)%     (45)% 
 
Revenue             77.9     61.8     26%       16% 
 
Book to Bill 
 
First quarter       0.79     1.66     -0.87 
 
 
Financial Position and Dividend 
 
Net debt at 31 March 2023 was £147.0 million, a reduction from £151.0 million 
at 31 December 2022. 
 
Based on the Group's improved trading and stronger cash performance, net debt/ 
EBITDA at the end of June 2023 is expected to be below that reported at the 
2022 year end. We continue to expect net debt/EBITDA to reduce towards two 
times by the end of 2023. 
 
The Board has declared a dividend for the first quarter of 18 pence per share 
(2022: 18 pence per share). The ex-dividend date will be 15 June 2023 and the 
dividend will be paid on 13 July 2023 to shareholders on the register at the 
record date of 16 June 2023. The last date for election for the share 
alternative to the dividend under the Company's Dividend Reinvestment Plan is 
22 June 2023. 
 
Outlook 
 
The Group has traded well in the opening months of 2023. We have significant 
order book visibility covering the remainder of 2023, and into 2024, and as 
such our full year expectations are unchanged. We continue to expect a modest 
second half weighting to the full year outturn. 
 
Longer term, the Board believes XP's clear strategy and financial framework 
leave the Group well positioned to grow ahead of its end markets, drive further 
market share gains, improve profitability and deliver strong cash generation. 
 
Enquiries: 
 
XP 
Power 
 
Gavin Griggs, Chief Executive Officer               +44 (0)118 984 5515 
 
David Stibbs, Interim Chief Financial Officer    +44 (0)118 984 5515 
 
Citigate Dewe 
Rogerson 
 
Kevin Smith/Lucy Gibbs                                    +44 (0)207 638 9571 
 
Note to editors 
 
XP Power designs and manufactures power controllers, the essential hardware 
component in every piece of electrical equipment that converts power from the 
electricity grid into the right form for equipment to function. Power 
controllers are critical for optimal delivery in challenging environments but 
are a small part of the overall customer product cost. 
 
XP Power typically designs power control solutions into the end products of 
major blue-chip OEMs, with a focus on the Industrial Technology (circa 41% of 
sales), Healthcare (circa 20% sales) and Semiconductor Manufacturing Equipment 
(circa 39% of sales) sectors. Once designed into a programme, XP Power has a 
revenue annuity over the life cycle of the customer's product which is 
typically five to seven years depending on the industry sector. XP Power has 
invested in research and development and its own manufacturing facilities in 
China, North America, and Vietnam, to develop a range of tailored products 
based on its own intellectual property that provide its customers with 
significantly improved functionality and efficiency. 
 
Headquartered in Singapore and listed on the Main Market of the London Stock 
Exchange since 2000, XP Power is a constituent of the FTSE All Share Index. XP 
Power serves a global blue-chip customer base from over 30 locations in Europe, 
North America, and Asia. 
 
For further information, please visit xppowerplc.com 
 
 
 
END
(END) Dow Jones Newswires
April 13, 2023 02:00 ET (06:00 GMT)
XP Power (AQSE:XPP.GB)
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